02 - LIS - Background of The LIS - Internal External LIS (Cont.)

Lecture # 2
27
Background of the logistics information systems.
Internal & External LIS
Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

28 Introduction to Operations and Supply Chain Management
Section Objectives
 Describe what a supply chain is and how it relates to a particular
organization’s operations function.
 Discuss what is meant by operations management and supply chain
management.
 Identify some of the major operations and supply chain activities, as well as
career opportunities in these areas.
 Make a case for studying both operations management and supply chain
management.
Definitions
29
 What Are Logistics?

 Logistics refers to the overall process of managing how
resources are acquired, stored, and transported to their
final destination.
 Logistics management involves identifying prospective
distributors and suppliers and determining their
effectiveness and accessibility.
 Logistics managers are referred to as logisticians.
 Logistics ( Inbound – Outbound ).

Definitions
30
 What Is a Supply Chain?

 A supply chain is a network between a company and
its suppliers to produce and distribute a specific
product or service to the final Customer.
 This network includes different activities, people,
entities, information, and resources.
 The supply chain also represents the steps it takes to
get the product or service from its original state to the
customer.

Definitions
31
 SCM Vs Logistics
 Logistics is a Subsection of the Supply Chain.
 Logistics is a Part of the End-to-End Supply Chain
Process.
 Logistics Plans, Implements, and Controls.
 Logistics Moves Goods from Place to Place.
 Logistics Stores Goods Until They Are Needed
Elsewhere “in different place”.
 Logistics Distributes Products to the End Customer.

Definitions
32
 Supply Chains are the Overarching Framework for
Sourcing, Manufacturing and Supplying Products.
 Supply Chain Management (SCM) Works Across
Multiple Organizations.
 Supply Chain Management (SCM) Can Also be
Responsible for Other Areas.

Definitions
33
 Ultimately, a strong supply chain provides a
competitive advantage to every organization that’s
involved.
 While the overall supply chain is responsible for
marketplace success and revenues.
 Logistics plays a critical, central role in ensuring raw
materials, parts and finished products flow smoothly
through the global supply chain.

Why Study Operations and Supply Chain
Management? (1 of 7)
34
 Every organization must make a product or provide a service that

someone values.
 Most organizations function as part of larger supply chains.
 Organizations must carefully manage their operations and supply chains
in order to prosper and, indeed survive.

35
 Operations Management – The planning, scheduling, and control of the

activities that transform inputs into finished goods and services.
Viewing Operations as a Transformation Process

36
 Supply Chain Management – The active management of

supply chain activities and relationships in order to
maximize customer value and achieve a sustainable
competitive advantage.
 Supply Chain – A network of manufacturers and service providers
that work together to create products or services
needed by end users, These manufacturers and service
providers are linked together through physical flows,
information flows, and monetary flows.

37
 Supply Chain Terminology

Upstream – Activities or firms positioned earlier in the supply chain.
Downstream – Activities or firms positioned later in the supply chain.
First-tier supplier – A supplier that provides products or services directly to a
firm.
Second-tier supplier – A supplier that provides products or services to a firm’s
first-tier supplier.

38
A Simplified View of Anheuser-Busch’s Supply Chain

39
 Supply Chain Operations Reference (SCOR) Model

 Planning activities, which seek to balance demand requirements
against resources and communicate these plans to the various
participants.
 Sourcing activities, which include identifying, developing, and
contracting with suppliers and scheduling the delivery of incoming
goods and services.
 “Make,” or production, activities, which cover the actual
production of a good or service.
 Delivery activities, which include everything from entering
customer orders and determining delivery dates to storing and
moving goods to their final destination.
Management? (7of 7)
40
 Return activities, which include the activities necessary to return and

process defective or excess products or materials.
Supply Chain Operations Reference (SCOR) Model

Supply Chain Management (SCM)
41
 It is a network of facilities and distribution options that

performs 5 major pillars That includes functions of:
 Planning of materials required.
 Procurement (Sourcing) of materials.
 Transformation (Production) of these materials into finished
products.
 Distribution (Delivery) of these finished products to customers.
 Returns : reverse supply chain.
Supply Chain Management (SCM)
42
 Taking into account a set of activities conducted in each pillar.

1. Planning: (Statement of Requirements - Request of Purchasing ).
2. Supplier Management (Sourcing): Monitoring and Evaluation of suppliers -
Supplier Selection - Submitting P.O.
3. Production (Manufacturing): (Receiving and starting the production cycle -
Ends by a finished product).
4. Delivery: (Packing & Packaging - Ink Jetting – Handling - Transportation –
Shipping – Insurance - Warehouse Management – Distribution - Delivery to
Customer “ends at the customer”.
5. Returns: reverse supply chain

The definition of Logistics Management
43
 Logistics management is the part of the supply chain process that plans,
implements, and controls the efficient, effective flow and storage of goods,
services, and related information from the point of origin to the point of
consumption to meet customer requirements.

Logistics Types
44

Logistics Elements
45

What Is Supply Chain Management
(SCM)?
46
 SCM is the management of the flow of goods and services and includes all processes that
transform raw materials into final products.
 It involves the active streamlining of a business's supply-side activities to maximize customer
value and gain a competitive advantage in the marketplace.
 SCM refers to all the activities required to turn raw materials into finished goods or services
and the work required to distribute and deliver those products or services to partners and,
ultimately, customers.
 SCM applies to the planning stage as well as the transfer and management of information
and capital that happens across the supply chain.
 This discipline consists of five main components: planning, sourcing, manufacturing,
delivery and returns.

Supply Chain Management
(SCM)
47
1. Planning (Statement of Requirement).

2. Supplier Management (Monitoring & evaluation,
selection, purchasing).
3. Production (Finished Goods).
4. Logistics.
5. The return system (for defective or unwanted products)

(SCM)
48
 1- Planning.
 Statement of Requirement.
 Request of Purchasing.
 2- Supplier Management.
 Monitoring and Evaluation of suppliers.
 Supplier Selection.
 Submitting P.O.

(SCM)
49
 3- Production.
 Receiving and starting the production cycle.
 Ends by a finished product.
 4- Logistics (Value added activities).
 Packing & Packaging. - Handling - Transportation - Shipping. - Insurance -
Warehouse Management.
 Distribution & Delivery to Customer (ends at the customer..)
 5- Returns.
 Sometimes products are sent back, whether due to customer dissatisfaction,
defects, excess inventory or a warranty claim.
 The item then moves through the reverse supply chain until it reaches the
company responsible for issuing a refund or replacement , That company then
either scraps the item, repairs it or returns it to available inventory.

What Is Supply Chain Management
(SCM)?
50

Benefits of SCM
51
 Cost savings.
 Better customer experience.
 Fewer quality issues.
 A stronger, more resilient supply chain.
 Greater sustainability.
 Create a competitive advantage.

from Supplier to Consumer
52

What is the Supply Chain ?
53

What is the different between Supply chain and
Logistics
54

SCM vs Logistics
55
SCM:
The integration of key business processes from end
user through original suppliers, that provides products,
services, and information that add value for customers and
other stakeholders.
Logistics:
Is a part of supply chain process that plans, implements
and controls the efficient, cost-effective flow and storage of
goods, services, and related information from point of origin
to point of consumption in order to meet customers’
requirements.
Management - An Art..!
56
 To make the things done with proper resource at correct cost,

place and schedule.
 To direct resources (human or material) in order to achieve certain

goals.
Elements of Management
Planning Organizing Directing Coordinating Controlling

What is the Five Functions of Management ?
57

Functions of Management
58

Levels of Management & Information flow
59
Top
Middle
Operational

Information Systems Are More Than Computers
60
 The Dimensions of IS
 Using information systems
effectively requires an
understanding of the organization,
management, and information
technology shaping the systems.
 Aninformation system creates

value for the firm as an
organizational and management
solution to challenges posed by the
environment.
Ahmed Gamal
Ahmed – Logistics
Gamal Information
– Logistics Systems
Information Systems Applications
Applications - Lecture- #Lecture
2 #2
Data & Information
61
 Data are facts, events, and transactions which have been recorded,
They are basically the raw inputs which further get processed to
become information.
 When facts are filtered through one or more processes (human or

system), and are ready to give certain kind of details… they are the
information.
 Processed data when presented in some useful and meaningful

form, it is actually the information we are looking at.
Appropriate Data Accurate Relevant Decision

Information

Difference between data & information?
62
Data Information
Raw facts Processed facts
Dead stored facts Live presented facts
Inactive (only exists in the backend) Active (being processed data for knowledge base)
Technology oriented Business oriented
Why do we require information ?

 To ensure effective & efficient decision making leading to prosperity of the
organization.

Classification of Information
63
By Source By Nature By Level By Time
By By
Frequency By Use By Form Occurrence/
Frequency

The Characteristics of Good Information
64
 The Characteristics of Good Information:

 Relevance for its purpose.
 Accurate for its purpose.
 Complete enough for its purpose.
 Reliable from a source in which the user has confidence.
 Presented to the right person.
 Presented in time for its purpose.
 Contains the right level of detail.
 Presented through the correct channel of communication.

 The meaning is clear and in an understandable format.

Perfect Information
65

The Characteristics of Good Information
66
 Relevant.
 Accurate.
 Complete
 Understandable.
What is System?
System is a functional unit, which involves set of procedures/functions to produce
certain outputs by processing data/information given as input.
Input Process Output

Some Basic Terminologies that leads to understanding
the concept of Information systems
67
 Database.
 Information system.
 User Interface.

What is Management Information ?
68
 Useful information for management decisions.
 Comprises processed data (information), necessary for making

management decisions and generally gives output in the form of
tables, matrix, reports, dashboards, graphs, trends, etc for
logical and analytical comparisons.
 Market trend reports, sales report, IT application usage reports,

Management dashboards, business information reports,
research reports, etc.

What is Management Information ?
69
 Dashboard for Facility and Lifecycle Management

Functions of Information Systems
70
 An information system contains

information about an organization
and its surrounding environment.
 Three basic activities: input,
processing, and output , produce
the information organizations need.
 Feedback is output returned to
appropriate people or activities in
the organization to evaluate and
refine the input.
 Environmental actors, such as
customers, suppliers, competitors,
stockholders, and regulatory
agencies, interact with the
organization and its information
systems.
Ahmed Gamal
Ahmed – Logistics
Gamal Information
– Logistics Systems
Information Systems Applications
Applications - Lecture- #Lecture
2 #2
What is MIS?
71
 MIS is basically a software tool

which gives a holistic report of
processed information based on which
management can take certain crucial
decision on which strategy and tactics
could be figured out.
 MIS provides information that is

needed to manage organizations
efficiently and effectively.

The difference between effectiveness and efficiency
72
 Effective : Adequate to accomplish a purpose; producing the intended

or expected result.
 Efficient : Performing or functioning in the best possible manner with
the least waste of time and effort.

The difference between effectiveness and efficiency
73
 Efficiency means whatever you produce or perform; it should be

done in a perfect way.
 Although, Effectiveness has a broader approach, which means the
extent to which the actual results have been achieved to fulfill the
desired outcome i.e. doing accurate things.
 These are the metric used to gauge the performance of an
employee in an organization.

Effectiveness And Efficiency
74

75

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Lecture # 2

Background of the logistics information systems.

Internal & External LIS

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 What Are Logistics?

 Logistics ( Inbound – Outbound ).

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 What Is a Supply Chain?

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 Every organization must make a product or provide a service that

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 Operations Management – The planning, scheduling, and control of the

Viewing Operations as a Transformation Process

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 Supply Chain Management – The active management of

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 Supply Chain Terminology

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

A Simplified View of Anheuser-Busch’s Supply Chain

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 Supply Chain Operations Reference (SCOR) Model

 Return activities, which include the activities necessary to return and

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 It is a network of facilities and distribution options that

 Taking into account a set of activities conducted in each pillar.

5. Returns: reverse supply chain

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

1. Planning (Statement of Requirement).

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 Monitoring and Evaluation of suppliers.

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 Fewer quality issues.

 A stronger, more resilient supply chain.

 Create a competitive advantage.

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 To make the things done with proper resource at correct cost,

 To direct resources (human or material) in order to achieve certain

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

 Aninformation system creates

 When facts are filtered through one or more processes (human or

 Processed data when presented in some useful and meaningful

Appropriate Data Accurate Relevant Decision

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

Raw facts Processed facts

Dead stored facts Live presented facts

Technology oriented Business oriented

Why do we require information ?

Ahmed Gamal – Logistics Information Systems Applications - Lecture # 2

By Source By Nature By Level By Time